JPM June $130 desparate for income

Underlying Security Symbol: JPM

 

One never wants to be desperate when investing but I am ever on the search for income and in this case I used JPM to demonstrate my flexibility.

(1) As they say buy when no one else wants to buy.  

JPM hit a 52 week low today.  Their earnings report was not well received.  And, their leader was making lots of excuses including war and Covid.  None of that is over so the street expects more trouble and more excuses to come.  But, revenues did grow.  And often times the street over reacts.  So I acted on the opportunity to buy when no one else wants to.

I filled out a lot at $127 which makes my cost basis on this lot an average of $130.

 

 

 

 

 

 

 

 

 

 

 

(2) Let them take it.

I sold an at the money call.  I don't care if they take it and in fact, I hope they do.  I booked $4.62 for that call.  That gives me a 3.55% yield immediately.  I will receive no capital gain if the call buyer does take my shares.  This proves I am in this trade because I love income; one could say I'm desperate for income.

I don't do this very often, but I like to keep my "options" open.

Good Income Investing,

MM MoneyMadam 

Data from Schwab.com and Marketxls